Update: Market closed up, ended day at 9623. 10,000 in sight.
AP: Wall Street enjoyed an Election Day rally Tuesday, surging as investors brushed off more weak economic data and looked forward to putting the uncertainty of the presidential voting behind them. The Dow Jones industrial average soared more than 200 points and appeared headed to its highest close in four weeks, while the other major indexes rose well over 2 per cent.
Earlier: Thank you MasterCard and ADM.
Bloomberg: U.S. stocks advanced in the biggest presidential Election Day rally in 24 years after MasterCard Inc. and Archer Daniels Midland Co. reported better-than- estimated earnings and money-market rates retreated.
MasterCard, the world’s second-biggest credit-card company, jumped 12 per cent after profit was boosted by higher overseas revenue and interbank lending rates retreated. ADM surged 15 per cent as rising commodity prices caused earnings to more than double at the world’s largest grain processor. General Electric Co. added 8.3 per cent and CIT Group Inc. climbed 30 per cent on a report that the Treasury may include financial companies other than banks and insurers in its $700 billion rescue program.
“The market has come to the conclusion that Armageddon is off the table,” said Philip Orlando, who helps manage $330 billion as chief equity strategist at Federated Investors Inc. in New York. “The elimination of the uncertainty of the campaign typically results in an end-of-year rally and you’re starting to see that today.”
The Standard & Poor’s 500 Index added 35.52 points, or 3.7 per cent, to 1,001.82 at 11:29 a.m. in New York, its first day above 1,000 since Oct. 14. The Dow Jones Industrial Average rose 284.5 points, or 3.1 per cent, to 9,604.33. The Nasdaq Composite Index advanced 49.26, or 2.9 per cent, to 1,775.59. Gains in Europe and Asia sent the MSCI World Index to a sixth straight advance.
Today’s gains in the S&P 500 and Dow average were the biggest ever for a presidential Election Day. The NYSE first opened for trading during a presidential vote in 1984. The S&P 500 averaged a 0.3 per cent gain on those days since then.
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